SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2011

Jul 13, 2011

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14 July 2011

Mr Wade Baggot Adviser, Issuers (Perth) ASX Limited Level 8, Exchange Plaza 2 The Esplanade Perth WA 6000

Dear Wade

OPTION EXPIRY NOTIFICATION: Sandfire Resources NL (ASX: SFR)

The Company advises that an Option Expiry Notice has been sent to all Unlisted Optionholders in relation to the expiry of the Company’s Unlisted Options on 8 August 2011.

Unlisted Options not exercised by 5.00pm (WST) on 8 August 2011 will automatically expire.

A copy of the Option Expiry Notice sent to all Unlisted Optionholders is attached.

Yours sincerely

Matthew Fitzgerald Company Secretary

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8 July 2011

Dear Optionholder

OPTION EXPIRY NOTICE YOUR OPTIONS TO ACQUIRE SANDFIRE RESOURCES NL SHARES AT $0.40 PER SHARE EXPIRE ON 8 AUGUST 2011

We are writing to you as a registered holder of 8 August 2011 unlisted options (Options) in SANDFIRE RESOURCES NL to remind you that the Options will expire at 5.00pm (WST) on 8 August 2011 .

Your option holding may be exercised in whole or in part by payment of $0.40 for each Option by no later than 8 August 2011 . If payment is not received by 5:00pm (WST) on 8 August 2011 the options will lapse and all rights under the options will cease at that time.

Some of the courses of action available to you as a holder of these Options are:

• a) Exercise the Options on or before 8 August 2011 .

• b) Do nothing (i.e. allow your Options to expire). If you do not exercise your Options they will expire on 8 August 2011 and your right to subscribe for ordinary shares in SANDFIRE RESOURCES NL at $0.40 per share will lapse.

There is no obligation on optionholders to exercise their Options. However, under paragraph 6.1 of Appendix 6A of the Australian Securities Exchange ( ASX ) Listing Rules, the Company is required to advise optionholders of the information contained in this notice.

The closing market sale price of ordinary shares in SANDFIRE RESOURCES NL on ASX was $7.26 on 7 July 2011, being the last trading day in Perth prior to the date of this notice.

During the three (3) months preceding the date of this notice:

• the highest market sale price of ordinary shares on ASX was $7.62 on 4 July 2011; and

• the lowest market sale price of ordinary shares on ASX was $6.08 on 17 May 2011.

If you wish to exercise your Options then you must complete your “Notice of Exercise of Options” form attached to this notice and forward it together with payment of $0.40 per Option exercised to be received no later than 5:00pm (WST) on 8 AUGUST 2011 to the Company’s share registry, being:

Security Transfer Registrars Pty Ltd PO BOX 535 or 770 Canning Highway APPLECROSS WA 6953 APPLECROSS WA 6153

Cheques should be made payable to “ SANDFIRE RESOURCES NL ” in Australian dollars only and should be crossed “Not negotiable”. If you have any further questions please do not hesitate to contact our Registry on e-mail registrar@securitytransfer.com.au, telephone (08) 9315 2333 or facsimile (08) 9315 2233.

Yours faithfully

MATTHEW FITZGERALD

COMPANY SECRETARY

NOTICE OF EXERCISE OF SANDFIRE RESOURCES NL OPTIONS

To The Directors Sandfire Resources NL

Share Registry: Security Transfer Registrars Pty Ltd PO Box 535 APPLECROSS WA 6953 Email: registrar@securitytransfer.com.au Website: www.securitytransfer.com.au Ph: (618) 9315 2333 Fax: (618) 9315 2233

I/We .....................................................................................................

Shareholder Number:

........................................................

............................................................................................................ Of .................................................................................................................................................................................. ...................................................................................................................................................................................... ......................................................................................................................................................................................

Being the registered holder of Options hereby exercise such Options to subscribe for ........................... Ordinary fully paid shares. I/We enclose application money of $ ................................................................................... and authorise you to register me/us as the holder of the shares to be allotted to me/us and I/we agree to accept such shares subject to the Rules of the Constitution of the Company

Individual or Holder 1DirectorContact Name	Securityholder 2Director/SecretaryContact Telephone Number	Securityholder 3Sole Director/Secretary	Date:
			Day / Month / Year

This application, with application money in Australian Currency, should be lodged at the Company’s Share Registry on or before 5.00pm (WST) 8 August 2011 , being the expiry date.

NOTE: Cheque should be made payable to SANDFIRE RESOURCES NL and forwarded to Security Transfer Registrars Pty Ltd.